“Mr. Sinegal begs to differ. He rejects Wall Street’s assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street’s profit demands.
“Good wages and benefits are why Costco has extremely low rates of turnover and theft by employees, he said. And Costco’s customers, who are more affluent than other warehouse store shoppers, stay loyal because they like that low prices do not come at the workers’ expense. ‘This is not altruistic,’ he said. ‘This is good business.'”
Mr. Sinegal is a good man. When his time comes, and that should not be too soon, he’s going to the best part of heaven.
“Emme Kozloff, an analyst at Sanford C. Bernstein & Company, faulted Mr. Sinegal as being too generous to employees, noting that when analysts complained that Costco’s workers were paying just 4 percent toward their health costs, he raised that percentage only to 8 percent, when the retail average is 25 percent.
“‘He has been too benevolent,’ she said. ‘He’s right that a happy employee is a productive long-term employee, but he could force employees to pick up a little more of the burden.'”
Ms. Kozloff is a monster and her way of thinking is everything that’s wrong in the world. She should rot in hell forever and ever and as soon as possible.
In Los Angeles, Costco used to be Price Club and it’s always been a good place to shop. It’s the best $50/year I spend.